Youth of today are savers

Category:
Savings

Updated:
11/02/2014
First Published:
06/02/2014

MONEYFACTS ARCHIVE

This article was correct at the time of publication. It is now over 6 months
old so the content may be out of date.

Society seems to like to put a label on people growing up in different eras, whether it be Generation X, Y or the Baby Boomers, but it seems we now have a new, and slightly surprising, name for young adults – the "Saver Generation."

Each month 18 – 24 year-olds, known as the millenials, are stashing away nearly 30% of their salary, according to a study of over 2000 British savers carried out by GE Capital Direct.

The 25 – 34 year-old age range are next in line, saving at least a fifth (22%) of their income, with 67% of this generation still worried they are not saving enough. Around 42% treat saving as a necessary bill, ensuring they are disciplined in putting a regular amount aside.

It's the older generations that that are not as on the ball about putting money away. Generation X, which incorporates the 45 – 54 year old bracket, are only saving around 12% of their income, while a third of Baby Boomers (55 – 64 year olds) are not saving anything at all, with those that are only saving about £180 compared to the average of £235.

It seems to be the youth of today's zest for life that is aiding them in their quest for saving. The You Only Life Once, or YOLO, mantra seems to be inspiring 18 – 24 year olds to put money away for aspirational experiences (13% compared to the overall average of 4%), while 29% are saving to get on the property ladder. However, experience seems to win, with millenials estimating they'll need £50,000 to live the YOLO lifestyle but only £37,000 to pay off a mortgage.

Sheragh Beirne of GE Capital UK said:

"Young adults these days work hard, save hard and are reaping the rewards of adopting a good savings habit early on through once-in-a-lifetime experiences. Despite being more likely to save for a rich array of life experiences than older generations, millennials remain keen to get their foot on the property ladder. That is why it's important for young adults to consider accounts that offer good interest rates requiring some notification for withdrawals to limit impulse buys and purchases."

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.